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DESIGNING ORGANIZATIONAL STRUCTURE - BASIC DESIGNS - Coggle Diagram
DESIGNING ORGANIZATIONAL STRUCTURE - BASIC DESIGNS
6 KEY ELEMENTS
FORMALIZATION
:
How standardized an organization’s jobs are and the extent to which employee behavior is guided by rules and procedures
DEPARTMENTALIZATION
TODAY'S VIEWS
popular trends
the use of teams
cross-functional team
A work team composed of individuals from various functional specialties
increasing use of customer departmentalization
Most large organizations continue to use combinations of most or all of these types of departmentalization
The basis by which jobs are grouped together
SPAN OF CONTROL
The number of employees a manager can efficiently and effectively manage.
Managers should directly supervise no more than five or six individuals.
TODAY'S VIEW: the span of control depends on the abilities and skills of managers and employees and on the characteristic of the situation.
CHAIN OF COMMAND
The chain of command runs from the top of the organization to the bottom, defining who reports to whom.
Authority
: The right to tell people what to do and expect them to do it that comes with being in a management position.
Responsibility
: The obligation or expectation to perform any assigned duties
Unity of command:
The management principle that each person should report to only one manager
TODAY'S VIEW: These concepts are less relevant in the recent time
WORK SPECIALIZATION
dividing work activities into separate job tasks.
TODAY'S VIEW: Most managers today continue to see work specialization as important because it helps employees be more efficient
CENTRALIZATION AND DECENTRALIZATION
CENTRALIZATION: The degree to which decision making is concentrated at upper levels of the organization
DECENTRALIAZATION: The degree to which lower-level employees provide input or actually make decisions
TODAY'S VIEW
As organizations have become more flexible and responsive to environmental trends, there’s been a distinct shift toward decentralized decision making.
employee empowerment:
giving employees more authority (power) to make decisions
MECHANISTIC AND ORGANIC STRUCTURES
Organic organization:
An organizational design that’s highly adaptive and flexible
Mechanistic organization:
An organizational design that’s rigid and tightly controlled
CONTIGENCY FACTORS AFFECTING STUCTURE CHOICE
Technology and Structure:
Every organization uses some form of technology to convert its inputs into outputs
Mass production
The production of items in large batches
Process production
The production of items in continuous processes
Unit production
The production of items in units or small batches
Environmental uncertainty and Structure:
Managers change the organization's structure to reduce environmental uncertainty.
Size and Structure:
Organization’s size affects its structure.
Strategy and Structure
: certain structural designs work best with different organizational strategies
TODAY'S VIEW: Organizations become more organic.
TRADITIONAL ORGANIZATIONAL DESIGNS
Functional structure:
An organizational design that groups together similar or related occupational specialties
Divisional structure:
An organizational structure made up of separate, semiautonomous units or divisions
Simple Structure:
An organizational design with little departmentalization, wide spans of control, centralized authority, and little formalization